Category of ‘Investment Instruments’

  P2P Financing Opportunities (Funding Societies)

Thursday, March 8th, 2018 | In Investment Instruments | Tags: , , ,

Funding Societies is a new and peer-to-peer (P2P) financing platform that acting as a marketplace to connect between the SMEs that require financing and investors who are seeking for high yielding investment vehicles in Malaysia. In November 2016, Malaysia became the first ASEAN country to regulate peer-to-peer (P2P) financing when the Securities Commission (SC) has announced six P2P financing operators. P2P financing, a business model taking place of financial technology innovation, and it is new a way to widen access to business funding for small and medium-sized enterprises (SMEs).

P2P Financing Opportunities (Funding Societies)
~ P2P Financing Opportunities (Funding Societies) ~

But P2P financing isn’t just for SMEs in need of working capital. The business model is simultaneously reliant and beneficial to two parties, which are SMEs and investors that seeking an alternative instrument with relatively higher returns. P2P financing is a form of alternative finance, where online platforms connect between SMEs and investors. Through P2P financing, more of the underserved segment would have accessed to funding and working capital.

If an investor sees an SME as promising and investment-worthy, they will invest in to the funding amount requested by the SME. SMEs will then repay the financing in monthly installments with interest to investors who pooled together funds for them. By investing into SMEs, investors will earn advantageous returns – often higher than fixed deposits (FD), bonds, and other traditional instruments.

What is Crowdfunding?
~ What is Crowdfunding? ~

How to Get More Than 10% Annual Returns from P2P Financing
P2P financing is fairly user-friendly. User can just simply register to a credible P2P financing platform, transfer your first deposit (Usually RM1,000.00), and invest into SME funding opportunities you are interested in. Minimum investment per SME varies across platforms. Local platform Funding Societies, for example, allows you to invest as little as RM 100 into each SME. If all goes well, you should see repayments starting the next month.
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